10 Oversold Penny Stocks To Invest In Now

8. TELUS International (Cda) Inc. (NYSE:TIXT)

Year to Date Gain as of October 25: -57.03%

Forward Price to Earnings Ratio: 6.50                                                           

Number of Hedge Fund Holders: 9

TELUS International (Cda) Inc. (NYSE:TIXT) designs, builds and delivers digital solutions for customer experience. A string of disappointing financial results and weak guidance has been the catalyst behind the stock coming under pressure and dropping 57.03% year to date.

In the second quarter, revenues were down 2% year over year to $652 million, attributed to lower revenues from a large social media client and other technology clients.  Revenues for the year’s first half were down 3% to $1.31 billion. TELUS International (Cda) Inc. (NYSE:TIXT) is one of the companies feeling the full brunt of a challenging macroeconomic environment compounded by competitive conditions in the industry

Nevertheless, the company is slowly inching into profitability, having posted a narrower-than-expected net loss of $3 million compared to a net loss of $7 million delivered in the same quarter last year. Likewise, net income for the first half of the year tripled to $25 million from $7 million a year, affirming why TELUS is one of the oversold penny stocks to invest in now as its profit margins improve.

While TELUS International (Cda) Inc. (NYSE:TIXT) has reiterated its guidance for the year, its quarterly revenue between the second and fourth quarters will have to grow sequentially by 4% to 6%. It is a challenging feat, considering it was last achieved in 2021.

Nevertheless, with the integration of artificial intelligence into its customer experience solutions, the company has the potential to fuel demand. Likewise, TELUS International (Cda) Inc. (NYSE:TIXT) is currently trading at a discount with a price-to-earnings multiple of 6.50 compared to an average P/E of 31 for tech stocks.